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Brits find it easier to raise finance abroad

5th May 2008: Algarve & Costa de la Luz Property News

The ongoing credit crisis is prompting many people to take the plunge and invest in a foreign property, an expert has said.

According to Paul Collins of the BuyAssociation website, foreign property ownership is becoming more and more popular in the UK. This is partially attributed to economic issues such as the slowdown in the British housing market, as this has prompted some investors to seek potential opportunities overseas. He added that the credit crunch is also having an effect, as many are losing confidence in the amount of money they have in their UK property.

It has also become much more difficult to secure mortgages in the UK with the European base rate, the EURIBOR, consistently lower than its UK counterpart and lenders here withdrawing products from the market or increasing their rates and fees. European lenders, unaffected by the Credit Crunch, have maintained their product choice and offer a range of solutions to overseas holiday home or buy-to-let investors who need to raise cash.

Assetz Finance has seen a 40% increase in enquiries for re-mortgages on property in France and Spain since the beginning of the year. The overseas finance specialist expects to see a continuous demand for such products throughout the year, whilst borrowing against UK assets remains restricted.

There are some excellent Spanish and Portuguese mortgage deals for example starting at rates of 4.4% and with very small or even no arrangement fees.

Ask our experts for property details.

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